Exhibit 99.1

THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES

Supplemental Consolidating Guarantor and Non-Guarantor Financial Information:

(dollars in thousands)

On June 30, 2014, affiliates of CCMP Capital Advisors, LLC (“CCMP”) and Oak Hill Capital Partners III, L.P., Oak Hill Capital Management Partners III, L.P. and OHCP III HC RO, L.P.), together with certain current and former members of Hillman’s management, consummated a merger transaction (the “Merger Transaction”) pursuant to the terms and conditions of an Agreement and Plan of Merger dated as of May 16, 2014.

The Company, through Hillman Group, had issued $265,000 in aggregate principal amount of 10.875% Senior Notes that were scheduled to mature on June 1, 2018. In connection with the Merger Transaction, the 10.875% Senior Notes were repaid and terminated.

Hillman Group issued $330,000 aggregate principal amount of its senior notes due July 15, 2022 (the “6.375% Senior Notes”). The 6.375% Senior Notes, of which $330,000 aggregate principal amount was outstanding as of December 31, 2014, are fully and unconditionally guaranteed on a joint and several basis by The Hillman Companies, Inc., Hillman Investment Company, and certain of the Company’s wholly-owned subsidiaries. The non-guarantor information presented represents our Australian, Canadian, and Mexican subsidiaries.

The following financial information presents consolidating statements of comprehensive loss, balance sheets, and cash flows for the Hillman Group, all guarantor subsidiaries, all non-guarantor subsidiaries, and the eliminations necessary to provide the consolidated results for the Hillman Companies and subsidiaries. For purposes of this presentation, we have accounted for investments in our subsidiaries using the equity method of accounting. The principal consolidating adjustments eliminate investment in subsidiary and intercompany balances and transactions.

 

Page 1 of 13


THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES

Supplemental Consolidating Guarantor and Non-Guarantor Financial Information:

(dollars in thousands)

 

Consolidating Statements of Comprehensive Loss (Unaudited)

For the period from June 30, 2014 through December 31, 2014

(Amounts in thousands)

 

     Successor  
     Guarantors
The Hillman
Companies, Inc.
    Issuer
The Hillman
Group, Inc.
    Guarantor
Subsidiaries
    Non-
Guarantor
Subsidiaries
    Consolidating
Adjustments
     Consolidated  

Net sales

   $ —        $ 292,255      $ 10,326      $ 74,711      $ —         $ 377,292   

Cost of sales (exclusive of depreciation and amortization shown separately below)

     —          137,849        7,275        48,097        —           193,221   

Selling, general and administrative expenses

     718        90,929        2,236        21,971        —           115,854   

Transaction, acquisition and integration expenses

     —          22,102        21        596        —           22,719   

Depreciation

     —          15,821        37        1,419        —           17,277   

Amortization

     16,403        1,544        108        1,073        —           19,128   

Intercompany administrative (income) expense

     —          (216     —          216        —           —     

Management and transaction fees to related party

     —          276        —          —          —           276   

Other (income) expense, net

     (43     1,857        (63     (1,175     —           576   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

(Loss) income from operations

  (17,078   22,093      712      2,514      —        8,241   

Intercompany interest (income) expense

  (6,115   6,115      —        —        —        —     

Interest (income) expense, net

  (457   24,213      —        3,494      —        27,250   

Interest expense on junior subordinated debentures

  6,305      —        —        —        —        6,305   

Investment income on trust common securities

  (189   —        —        —        —        (189
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

(Loss) income before equity in subsidiaries’ income

  (16,622   (8,235   712      (980   —        (25,125

Equity in subsidiaries’ (loss) income

  (9,743   (1,508   —        —        11,251      —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

(Loss) income before income taxes

  (26,365   (9,743   712      (980   11,251      (25,125

Income tax (benefit) provision

  (7,428   —        313      927      —        (6,188
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Net (loss) income

$ (18,937 $ (9,743 $ 399    $ (1,907 $ 11,251    $ (18,937
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Other comprehensive (loss) income:

Foreign currency translation adjustments

  —        (8,320   —        (45,566   41,362      (12,524
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Total comprehensive (loss) income

$ (18,937 $ (18,063 $ 399    $ (47,473 $ 52,613    $ (31,461
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

 

Page 2 of 13


THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES

Supplemental Consolidating Guarantor and Non-Guarantor Financial Information:

(dollars in thousands)

 

Consolidating Statements of Comprehensive Income (Loss) (Unaudited)

For the six months ended June 29, 2014

(Amounts in thousands)

 

     Predecessor  
     Guarantors
The Hillman
Companies, Inc.
    Issuer
The Hillman
Group, Inc.
    Guarantor
Subsidiaries
     Non-
Guarantor
Subsidiaries
    Consolidating
Adjustments
     Consolidated  

Net sales

   $ —        $ 263,194      $ 16,053       $ 78,130      $ —         $ 357,377   

Cost of sales (exclusive of depreciation and amortization shown separately below)

     —          123,971        11,185         48,186        —           183,342   

Selling, general and administrative expenses

     39,324        90,090        3,656         23,692        —           156,762   

Transaction, acquisition and integration expenses

     —          31,681        —           —          —           31,681   

Depreciation

     —          12,789        48         1,312        —           14,149   

Amortization

     9,029        1,543        —           521        —           11,093   

Intercompany administrative (income) expense

     —          (216     —           216        —           —     

Management and transaction fees to related party

     —          15        —           —          —           15   

Other (income) expense, net

     (95     151        10         (343     —           (277
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

(Loss) income from operations

  (48,258   3,170      1,154      4,546      —        (39,388

Intercompany interest (income) expense

  (6,117   6,117      —        —        —        —     

Interest (income) expense, net

  (103   19,802      —        3,451      —        23,150   

Interest expense on junior subordinated debentures

  6,305      —        —        —        —        6,305   

Investment income on trust common securities

  (189   —        —        —        —        (189
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

(Loss) income before equity in subsidiaries’ income

  (48,154   (22,749   1,154      1,095      —        (68,654

Equity in subsidiaries’ (loss) income

  (21,498   1,251      —        —        20,247      —     
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

(Loss) income before income taxes

  (69,652   (21,498   1,154      1,095      20,247      (68,654

Income tax (benefit) provision

  (25,126   —        426      572      —        (24,128
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Net (loss) income

$ (44,526 $ (21,498 $ 728    $ 523    $ 20,247    $ (44,526
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Other comprehensive (loss) income:

Foreign currency translation adjustments

  —        (151   —        (102   158      (95
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total comprehensive (loss) income

$ (44,526 $ (21,649 $ 728    $ 421    $ 20,405    $ (44,621
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

 

Page 3 of 13


THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES

Supplemental Consolidating Guarantor and Non-Guarantor Financial Information:

(dollars in thousands)

 

Consolidating Statements of Comprehensive Loss (Unaudited)

For the year ended December 31, 2013

(Amounts in thousands)

 

     Predecessor  
     Guarantors
The Hillman
Companies, Inc.
    Issuer
The Hillman
Group, Inc.
    Guarantor
Subsidiaries
    Non-
Guarantor
Subsidiaries
    Consolidating
Adjustments
    Consolidated  

Net sales

   $ —        $ 529,949      $ 31,886      $ 139,806      $ —        $ 701,641   

Cost of sales (exclusive of depreciation and amortization shown separately below)

     —          251,491        22,836        84,999        —          359,326   

Selling, general and administrative expenses

     9,370        168,073        6,589        41,619        —          225,651   

Acquisition and integration expense

     —          2,931        74        5,633        —          8,638   

Depreciation

     —          22,381        85        2,330        —          24,796   

Amortization

     18,058        3,087        —          967        —          22,112   

Intercompany administrative (income) expense

     —          (348     —          348        —          —     

Management and transaction fees to related party

     —          77        —          —          —          77   

Other (income) expense, net

     (364     3,661        (158     1,461        —          4,600   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations

  (27,064   78,596      2,460      2,449      —        56,441   

Intercompany interest (income) expense

  (12,232   12,259      —        (27   —        —     

Interest (income) expense, net

  (190   41,930      —        6,398      —        48,138   

Interest expense on junior subordinated debentures

  12,610      —        —        —        —        12,610   

Investment income on trust common securities

  (378   —        —        —        —        (378
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before equity in subsidiaries’ income

  (26,874   24,407      2,460      (3,922   —        (3,929

Equity in subsidiaries’ income (loss)

  21,936      (2,471   —        —        (19,465   —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

  (4,938   21,936      2,460      (3,922   (19,465   (3,929

Income tax provision (benefit)

  (3,790   —        867      142      —        (2,781
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

$ (1,148 $ 21,936    $ 1,593    $ (4,064 $ (19,465 $ (1,148
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other comprehensive income (loss):

Foreign currency translation adjustments

  —        (5,643   —        (99   —        (5,742
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income (loss)

$ (1,148 $ 16,293    $ 1,593    $ (4,163 $ (19,465 $ (6,890
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

Page 4 of 13


THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES

Supplemental Consolidating Guarantor and Non-Guarantor Financial Information:

(dollars in thousands)

 

Consolidating Statements of Comprehensive Loss (Unaudited)

For the year ended December 31, 2012

(Amounts in thousands)

 

     Predecessor  
     Guarantors
The Hillman
Companies, Inc.
    Issuer
The Hillman
Group, Inc.
    Guarantor
Subsidiaries
    Non-
Guarantor
Subsidiaries
    Consolidating
Adjustments
    Consolidated  

Net sales

   $ —        $ 517,135      $ 18,837      $ 19,493      $ —        $ 555,465   

Cost of sales (exclusive of depreciation and amortization shown separately below)

     —          247,976        14,162        12,878        —          275,016   

Selling, general and administrative expenses

     1,043        174,667        3,717        8,903        —          188,330   

Acquisition and integration expense

     —          3,031        —          —          —          3,031   

Depreciation

     —          21,839        88        82        —          22,009   

Amortization

     18,058        3,298        —          396        —          21,752   

Intercompany administrative (income) expense

     —          (347     —          347        —          —     

Management and transaction fees to related party

     —          155        —          —          —          155   

Other (income) expense, net

     (358     4,877        (11     (304     —          4,204   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations

  (18,743   61,639      881      (2,809   —        40,968   

Intercompany interest (income) expense

  (12,232   12,232      —        —        —        —     

Interest (income) expense, net

  (279   41,415      —        2      —        41,138   

Interest expense on junior subordinated debentures

  12,610      —        —        —        —        12,610   

Investment income on trust common securities

  (378   —        —        —        —        (378
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before equity in subsidiaries’ income

  (18,464   7,992      881      (2,811   —        (12,402

Equity in subsidiaries’ income (loss)

  4,774      (2,023   —        —        (2,751   —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

  (13,690   5,969      881      (2,811   (2,751   (12,402

Income tax provision (benefit)

  (6,456   1,195      333      (240   —        (5,168
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

$ (7,234 $ 4,774    $ 548    $ (2,571 $ (2,751 $ (7,234
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other comprehensive income (loss):

Foreign currency translation adjustments

  —        —        —        1,051      —        1,051   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income (loss)

$ (7,234 $ 4,774    $ 548    $ (1,520 $ (2,751 $ (6,183
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

Page 5 of 13


THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES

Supplemental Consolidating Guarantor and Non-Guarantor Financial Information:

(dollars in thousands)

 

Consolidating Balance Sheet (Unaudited)

As of December 31, 2014

(Amounts in thousands)

 

     Successor  
     Guarantors
The Hillman
Companies, Inc.
    Issuer
The Hillman
Group, Inc.
     Guarantor
Subsidiaries
    Non-
Guarantor
Subsidiaries
    Consolidating
Adjustments
    Consolidated  
ASSETS              

Current assets:

             

Cash and cash equivalents

   $ 1      $ 13,191       $ 696      $ 4,597      $ —        $ 18,485   

Restricted investments

     494        —           —          —          —          494   

Accounts receivable, net

     —          65,270         1,175        23,439        —          89,884   

Inventories, net

     —          141,472         5,687        57,885        (321     204,723   

Deferred income taxes

     11,191        277         538        1,331        (98     13,239   

Other current assets

     —          8,142         124        2,058        —          10,324   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total current assets

  11,686      228,352      8,220      89,310      (419   337,149   

Intercompany notes receivable

  105,446      112,977      (6,975   (106,002   (105,446   —     

Intercompany interest receivable

  —        948      —        —        (948   —     

Investments in subsidiaries

  (840,201   69,419      4,300      271,714      494,768      —     

Property and equipment, net

  —        101,299      298      12,934      —        114,531   

Goodwill

  789,870      338,696      3,240      37,780      (548,026   621,560   

Other intangibles, net

  746,714      —        4,682      47,545      —        798,941   

Restricted investments

  1,750      —        —        —        —        1,750   

Deferred income taxes

  53,715      143      (477   (2   (53,379   —     

Deferred financing fees

  —        24,407      —        —        —        24,407   

Investment in trust common securities

  3,261      —        —        —        —        3,261   

Other assets

  —        1,317      25      72      —        1,414   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

$ 872,241    $ 877,558    $ 13,313    $ 353,351    $ (213,450 $ 1,903,013   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 
LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$ —      $ 53,487    $ 422    $ 12,553    $ —      $ 66,462   

Current portion of senior term loans

  —        5,500      —        —        —        5,500   

Current portion of capitalized lease and other obligations

  —        207      —        —        —        207   

Interest payable on junior subordinated debentures

  —        —        —        —        —        —     

Intercompany interest payable

  —        —        —        948      (948   —     

Accrued expenses:

Salaries and wages

  —        4,144      120      983      —        5,247   

Pricing allowances

  —        3,621      3      3,038      —        6,662   

Income and other taxes

  (581   2,325      37      1,520      —        3,301   

Interest

  —        10,587      —        —        —        10,587   

Deferred compensation

  494      —        —        —        —        494   

Other accrued expenses

  —        6,990      40      393      —        7,423   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total current liabilities

  (87   86,861      622      19,435      (948   105,883   

 

Page 6 of 13


THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES

Supplemental Consolidating Guarantor and Non-Guarantor Financial Information:

(dollars in thousands)

Consolidating Balance Sheet (Unaudited)

As of December 31, 2014

(Amounts in thousands)

     Successor  
     Guarantors
The Hillman
Companies, Inc.
    Issuer
The Hillman
Group, Inc.
    Guarantor
Subsidiaries
     Non-
Guarantor
Subsidiaries
    Consolidating
Adjustments
    Consolidated  

Intercompany debt payable

     —          105,446        —           —          (105,446     —     

Long term senior term loans

     —          541,750        —           —          —          541,750   

Bank revolving credit

     —          —          —           —          —          —     

Long term portion of capitalized leases and other obligations

     —          400        —           —          —          400   

Long term senior notes

     —          330,000        —           —          —          330,000   

Junior subordinated debentures

     130,685        —          —           —          —          130,685   

Deferred compensation

     1,750        —          —           —          —          1,750   

Deferred income taxes, net

     310,804        —          2,037         14,417        (53,477     273,781   

Other non-current liabilities

     —          4,359        —           1,262        —          5,621   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total liabilities

  443,152      1,068,816      2,659      35,114      (159,871   1,389,870   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Commitments and Contingencies (Note 17)

Stockholders’ Equity:

Preferred Stock:

Preferred stock, $.01 par, 5,000 shares authorized, none issued and outstanding at December 31, 2014 and 2013

  —        —        —        —        —        —     

Common Stock:

Common stock, $.01 par, 5,000 shares authorized, issued and outstanding at December 31, 2014

  —        —        50      —        (50   —     

Additional paid-in capital

  632,602      5,842      10,197      375,287      (479,324   544,604   

Accumulated deficit

  (203,513   (188,780   407      (11,484   384,433      (18,937

Accumulated other comprehensive (loss) income

  —        (8,320   —        (45,566   41,362      (12,524
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total stockholders’ equity

  429,089      (191,258   10,654      318,237      (53,579   513,143   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total liabilities and stockholders’ equity

$ 872,241    $ 877,558    $ 13,313    $ 353,351    $ (213,450 $ 1,903,013   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

 

Page 7 of 13


THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES

Supplemental Consolidating Guarantor and Non-Guarantor Financial Information:

(dollars in thousands)

 

Consolidating Balance Sheet (Unaudited)

As of December 31, 2013

(Amounts in thousands)

 

     Predecessor  
     Guarantors
The Hillman
Companies, Inc.
    Issuer
The Hillman
Group, Inc.
     Guarantor
Subsidiaries
    Non-
Guarantor
Subsidiaries
    Consolidating
Adjustments
    Consolidated  
ASSETS              

Current assets

             

Cash and cash equivalents

   $ 1      $ 27,553       $ 792      $ 6,623      $ —        $ 34,969   

Restricted investments

     2,856        —           —          —          —          2,856   

Accounts receivable

     —          71,173         1,043        15,299        —          87,515   

Inventories

     —          101,386         10,048        66,450        (304     177,580   

Deferred income taxes

     10,041        —           830        830        (605     11,096   

Other current assets

     —          6,006         322        2,754        —          9,082   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total current assets

  12,898      206,118      13,035      91,956      (909   323,098   

Intercompany notes receivable

  105,446      103,422      —        (103,422   (105,446   —     

Intercompany interest receivable

  —        1,975      —        —        (1,975   —     

Investments in subsidiaries

  (648,310   28,122      507      263,216      356,465      —     

Property and equipment

  —        81,406      400      14,012      —        95,818   

Goodwill

  418,947      24,512      2,701      19,787      280      466,227   

Other intangibles

  293,774      42,959      250      25,382      —        362,365   

Restricted investments

  1,530      —        —        —        —        1,530   

Deferred income taxes

  31,349      —        (616   2,095      (32,828   —     

Deferred financing fees

  —        9,798      —        —        —        9,798   

Investment in trust common securities

  3,261      —        —        —        —        3,261   

Other assets

  —        2,442      25      292      —        2,759   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

$ 218,895    $ 500,754    $ 16,302    $ 313,318    $ 215,587    $ 1,264,856   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 
LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities

Accounts payable

$ —      $ 25,610    $ 1,036    $ 17,723    $ —      $ 44,369   

Current portion of senior term loans

  —        3,968      —        —        —        3,968   

Intercompany interest payable

  —        —        —        1,975      (1,975   —     

Current portion of capitalized lease and other obligations

  —        219      —        —        —        219   

Accrued expenses:

Salaries and wages

  —        8,462      287      3,115      —        11,864   

Pricing allowances

  —        3,791      1      2,418      —        6,210   

Income and other taxes

  (568   2,267      30      1,392      —        3,121   

Interest

  —        2,674      —        —        —        2,674   

Deferred compensation

  2,856      —        —        —        —        2,856   

Other accrued expenses

  —        6,191      261      2,579      —        9,031   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total current liabilities

  2,288      53,182      1,615      29,202      (1,975   84,312   

 

Page 8 of 13


THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES

Supplemental Consolidating Guarantor and Non-Guarantor Financial Information:

(dollars in thousands)

Consolidating Balance Sheet (Unaudited)

As of December 31, 2013

(Amounts in thousands)

 

     Predecessor  
     Guarantors
The Hillman
Companies, Inc.
    Issuer
The Hillman
Group, Inc.
    Guarantor
Subsidiaries
     Non-
Guarantor
Subsidiaries
    Consolidating
Adjustments
    Consolidated  

Intercompany debt payable

     —          105,446        —           —          (105,446     —     

Long term senior term loans

     —          377,641        —           —          —          377,641   

Long term portion of capitalized lease and other obligations

     —          337        —           —          —          337   

Long term senior notes

     —          271,750        —           —          —          271,750   

Junior subordinated debentures

     114,941        —          —           —          —          114,941   

Deferred compensation

     1,530        —          —           —          —          1,530   

Deferred income taxes, net

     143,313        —          260         9,920        (33,433     120,060   

Other non-current liabilities

     9,618        5,773        —           —          —          15,391   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total liabilities

  271,690      814,129      1,875      39,122      (140,854   985,962   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Common stock with put options:

Common stock, $.01 par, 5,000 shares authorized, 161.2 issued and outstanding at December 31, 2013.

  16,975      —        —        —        —        16,975   

Commitments and Contingencies

Stockholders’ Equity:

Preferred Stock:

Preferred stock, $.01 par, 5,000 shares authorized, none issued and outstanding at December 31, 2013.

  —        —        —        —        —        —     

Common Stock:

Common stock, $.01 par, 5,000 shares authorized, 4,838.8 issued and outstanding at December 31, 2013.

  —        —        50      —        (50   —     

Additional paid-in capital

  116,659      (130,559   11,711      293,717      1,461      292,989   

Accumulated deficit

  (186,429   (177,173   2,666      (6,522   341,259      (26,199

Accumulated other comprehensive (loss) income

  —        (5,643   —        (12,999   13,771      (4,871
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total stockholders’ (deficit) equity

  (69,770   (313,375   14,427      274,196      356,441      261,919   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total liabilities and stockholders’ equity

$ 218,895    $ 500,754    $ 16,302    $ 313,318    $ 215,587    $ 1,264,856   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

 

Page 9 of 13


THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES

Supplemental Consolidating Guarantor and Non-Guarantor Financial Information:

(dollars in thousands)

 

Consolidating Statement of Cash Flows (Unaudited)

For the period from June 30, 2014 through December 31, 2014

(Amounts in thousands)

 

     Successor  
     Guarantors
The Hillman
Companies, Inc.
    Issuer
The Hillman
Group, Inc.
    Guarantor
Subsidiaries
    Non-
Guarantor
Subsidiaries
    Consolidating
Adjustments
     Consolidated  

Cash flows from operating activities:

             

Net (loss) income

   $ (9,194   $ (8,243   $ 407      $ (1,907   $ —         $ (18,937

Adjustments to reconcile net (loss) income to net cash provided by operating activities:

             

Depreciation and amortization

     16,403        17,365        34        2,603        —           36,405   

Dispositions of property and equipment

     —          49        13        58        —           120   

Deferred income tax (benefit) provision

     (7,372     54        (24     116        —           (7,226

Deferred financing and original issue discount amortization

     457        1,948        —          —          —           2,405   

Stock-based compensation expense

     675        —          —          —          —           675   

Other non-cash interest expense

     —          935        —          —          —           935   

Changes in operating items:

             

Accounts receivable

     —          15,756        1,136        5,542        —           22,434   

Inventories

     —          (17,298     24        2,633        —           (14,641

Other assets

     —          4,406        (323     (12,480     —           (8,397

Accounts payable

     —          1,484        (400     5,103        —           6,187   

Interest payable on junior subordinated debentures

     (1,019     —          —          —          —           (1,019

Other accrued liabilities

     108        (24,782     (73     (3,544     —           (28,291

Other items, net

     185,629        (185,784     (202     (2,442     —           (2,799
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Net cash provided by (used for) operating activities

  185,687      (194,110   592      (4,318   —        (12,149
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Cash flows from investing activities:

Acquisition of Hillman Companies, Inc.

  (729,616   —        —        —        —        (729,616

Capital expenditures

  —        (13,961   (64   (950   —        (14,975
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Net cash (used for) investing activities

  (729,616   (13,961   (64   (950   —        (744,591
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Cash flows from financing activities:

Borrowings of senior term loans

  —        550,000      —        —        —        550,000   

Repayments of senior term loans

  —        (387,157   —        —        —        (387,157

Borrowings on revolving credit loans

  —        16,000      —        —        —        16,000   

Repayments of revolving credit loans

  —        (16,000   —        —        —        (16,000

Principal payments under capitalized lease obligations

  —        (112   —        —        —        (112

Borrowings of senior notes

  —        330,000      —        —        —        330,000   

Repayment of senior notes

  —        (265,000   —        —        —        (265,000

Capital contribution from parent

  542,929      —        —        —        —        543,929   

Capital contribution from board member

  1,000      —        —        —        —        —     

Financing fees

  —        (26,355   —        —        —        (26,355

Repayments of other credit obligations

  —        (70   —        —        —        (70
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Net cash (used for) financing activities

  543,929      201,306      —        —        —        745,235   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Effect of exchange rate changes on cash

  —        (2,527   —        (513   —        (3,040

Net (decrease) increase in cash and cash equivalents

  —        (9,292   528      (5,781   —        (14,545

Cash and cash equivalents at beginning of period

  1      22,483      168      10,378      —        33,030   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Cash and cash equivalents at end of period

$ 1    $ 13,191    $ 696    $ 4,597    $ —      $ 18,485   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

 

Page 10 of 13


THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES

Supplemental Consolidating Guarantor and Non-Guarantor Financial Information:

(dollars in thousands)

 

Consolidating Statement of Cash Flows (Unaudited)

For the six months ended June 29, 2014

(Amounts in thousands)

 

     Predecessor  
     Guarantors
The Hillman
Companies, Inc.
    Issuer
The Hillman
Group, Inc.
    Guarantor
Subsidiaries
    Non-
Guarantor
Subsidiaries
    Consolidating
Adjustments
     Consolidated  

Cash flows from operating activities:

             

Net (loss) income

   $ (23,029   $ (22,749   $ 728      $ 524      $ —         $ (44,526

Adjustments to reconcile net (loss) income to net cash provided by operating activities:

             

Depreciation and amortization

     9,029        14,332        48        1,833        —           25,242   

Deferred income tax (benefit) provision

     (24,245     —          206        (419     —           (24,458

Deferred financing and original issue discount amortization

     (103     1,477        —          —          —           1,374   

Stock-based compensation expense

     39,229        —          —          —          —           39,229   

Changes in operating items:

             

Accounts receivable

     —          (17,638     (633     (6,996     —           (25,267

Inventories

     —          (17,769     (666     584        —           (17,851

Other assets

     —          (3,199     678        11,320        —           8,799   

Accounts payable

     —          25,944        236        (5,369     —           20,811   

Interest payable on junior subordinated debentures

     1,019        —          —          —          —           1,019   

Other accrued liabilities

     (123     28,651        (4     2,659        —           31,183   

Other items, net

     (2,251     (1,168     (659     235        —           (3,843
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Net cash provided by (used for) operating activities

  (474   7,881      (66   4,371      —        11,712   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Cash flows from investing activities:

Capital expenditures

  —        (12,224   (57   (652   —        (12,933
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Net cash (used for) investing activities

  —        (12,224   (57   (652   —        (12,933
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Cash flows from financing activities:

Repayments of senior term loans

  —        (992   —        —        —        (992

Principal payments under capitalized lease obligations

  —        (84   —        —        —        (84

Proceeds from exercise of stock options

  474      —        —        —        —        474   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Net cash (used for) financing activities

  474      (1,076   —        —        —        (602
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Effect of exchange rate changes on cash

  —        (151   —        35      —        (116

Net (decrease) increase in cash and cash equivalents

  —        (5,570   (123   3,754      —        (1,939

Cash and cash equivalents at beginning of period

  1      27,553      791      6,624      —        34,969   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Cash and cash equivalents at end of period

$ 1    $ 21,983    $ 668    $ 10,378    $ —      $ 33,030   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

 

Page 11 of 13


THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES

Supplemental Consolidating Guarantor and Non-Guarantor Financial Information:

(dollars in thousands)

 

Consolidating Statement of Cash Flows (Unaudited)

For the year ended December 31, 2013

(Amounts in thousands)

 

     Predecessor  
     Guarantors
The Hillman
Companies, Inc.
    Issuer
The Hillman
Group, Inc.
    Guarantor
Subsidiaries
    Non-
Guarantor
Subsidiaries
    Consolidating
Adjustments
     Consolidated  

Cash flows from operating activities:

             

Net (loss) income

   $ (23,084   $ 24,407      $ 1,593      $ (4,064   $ —         $ (1,148

Adjustments to reconcile net loss to net cash (used for) provided by operating activities:

             

Depreciation and amortization

     18,058        25,468        85        3,297        —           46,908   

Dispositions of property and equipment

     —          768        6        3        —           777   

Deferred income tax provision (benefit)

     (4,268     —          816        (172     —           (3,624

Deferred financing and original issue discount amortization

     (190     2,682        —          —          —           2,492   

Stock-based compensation expense

     9,006        —          —          —          —           9,006   

Other non-cash interest and change in value of interest rate swap

     —          (418     —          —          —           (418

Changes in operating items:

             

Accounts receivable

     —          (4,066     (596     (4,436     —           (9,098

Inventories

     —          3,672        (867     (14,272     —           (11,467

Other assets

     —          (1,566     (620     (1,903     —           (4,089

Accounts payable

     —          (6,263     304        14,368        —           8,409   

Other accrued liabilities

     57        (3,723     (419     6,797        —           2,712   

Other items, net

     421        (102,480     (1     103,125        —           1,065   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Net cash provided by (used for) operating activities

  —        (61,519   301      102,743      —        41,525   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Cash flows from investing activities:

Payment for Paulin acquisition

  —        (918   206      (102,704   —        (103,416

Capital expenditures

  —        (37,086   (151   (801   —        (38,038

Proceeds from sale of property and equipment

  —        792      7      —        —        799   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Net cash used for investing activities

  —        (37,212   62      (103,505   —        (140,655
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Cash flows from financing activities:

Borrowings of senior term loans

  —        76,800      —        —        —        76,800   

Repayments of senior term loans

  —        (3,776   —        —        —        (3,776

Discount on senior senior term loans

  —        (3,152   —        —        —        (3,152

Principal payments under capitalized lease obligations

  —        (503   —        —        —        (503

Borrowings under other credit obligations

  —        324      —        —        —        324   

Repayments of other credit obligations

  —        (683   —        —        —        (683
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Net cash (used for) provided by financing activities

  —        69,010      —        —        —        69,010   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Effect on exhange rate changes on cash

  —        (5,643   —        5,184      —        (459

Net (decrease) increase in cash and cash equivalents

  —        (35,364   363      4,422      —        (30,579

Cash and cash equivalents at beginning of period

  1      62,917      429      2,201      —        65,548   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Cash and cash equivalents at end of period

$ 1    $ 27,553    $ 792    $ 6,623    $ —      $ 34,969   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

 

Page 12 of 13


THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES

Supplemental Consolidating Guarantor and Non-Guarantor Financial Information:

(dollars in thousands)

 

Consolidating Statement of Cash Flows (Unaudited)

For the year ended December 31, 2012

(Amounts in thousands)

 

     Predecessor  
     Guarantors
The Hillman
Companies, Inc.
    Issuer
The Hillman
Group, Inc.
    Guarantor
Subsidiaries
    Non-
Guarantor
Subsidiaries
    Consolidating
Adjustments
     Consolidated  

Cash flows from operating activities:

             

Net (loss) income

   $ (12,008   $ 6,797      $ 548      $ (2,571   $ —         $ (7,234

Adjustments to reconcile net loss to net cash (used for)provided by operating activities:

             

Depreciation and amortization

     18,058        25,137        88        478        —           43,761   

Dispositions of property and equipment

     —          271        21        —          —           292   

Deferred income tax provision (benefit)

     (6,382     1,686        299        (1,216     —           (5,613

Deferred financing and original issue discount amortization

     (279     2,459        —          —          —           2,180   

Stock-based compensation expense

     714        —          —          —          —           714   

Other non-cash interest and change in value of interest rate swap

     —          (787     —          —          —           (787

Changes in operating items:

             

Accounts receivable

     —          2,431        (50     (922     —           1,459   

Inventories

     —          (9,776     439        (902     —           (10,239

Other assets

     —          (6,003     (1,319     3,213        —           (4,109

Accounts payable

     —          (568     (138     (1,478     —           (2,184

Other accrued liabilities

     (76     3,623        121        1,300        —           4,968   

Other items, net

     (27     (1,645     (2     1,746        —           72   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Net cash provided by (used for) operating activities

  —        23,625      7      (352   —        23,280   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Cash flows from investing activities:

Capital expenditures

  —        (23,973   (128   (204   —        (24,305

Proceeds from sale of property and equipment

  —        —        3      —        —        3   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Net cash used for investing activities

  —        (23,973   (125   (204   —        (24,302
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Cash flows from financing activities:

Repayments of senior term loans

  —        (3,200   —        —        —        (3,200

Borrowings of revolving credit loans

  —        19,000      —        —        —        19,000   

Repayments of revolving credit loans

  —        (19,000   —        —        —        (19,000

Payment of additional acquisition consideration

  —        (12,387   —        —        —        (12,387

Principal payments under capitalized lease obligations

  —        (47   —        —        —        (47

Borrowings of senior notes

  —        65,000      —        —        —        65,000   

Premium on senior notes

  —        4,225      —        —        —        4,225   

Borrowings under other credit obligations

  —        1,119      —        —        —        1,119   

Repayments of other credit obligations

  —        (297   —        —        —        (297
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Net cash (used for) provided by financing activities

  —        54,413      —        —        —        54,413   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Effect of exchange rate changes on cash

  —        —        —        130      —        130   

Net (decrease) increase in cash and cash equivalents

  —        54,065      (118   (426   —        53,521   

Cash and cash equivalents at beginning of period

  1      8,852      547      2,627      —        12,027   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Cash and cash equivalents at end of period

$ 1    $ 62,917    $ 429    $ 2,201    $ —      $ 65,548   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

 

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